Aggregate Vs. Entity Approach Essay

Aggregate vs. Entity Approach Essay
Lesson 1. Aggregate vs. Entity Approach
1. Aggregate approach: the partnership as a separate entity is disregarded and each partner is viewed as directly owning an undivided interest in the
partnership's assets operations.
If the tax law used only aggregate concepts, the partnerships and their partners would be treated:
– Each partner would be taxed on share of partnership income and would be viewed as owning a direct interest in each partnership asset.
– Contributions and distributions would be viewed as taxable transfers.
2. The portions of Subchapter K that reflect the aggregation approach: taxation of partnership income to the partners and the nonrecognition provisions
for contributions to and distributions from partnerships. ... Show more content on Helpwriting.net ...
– Partner has flexibility to withdraw or transfer his interest
– Partner can elect to adjust the bases of partnership assets in connection with certain distributions of assets and transfers.
6. Outside of Subchapter K, however, determining which of the two theories should apply is much more uncertain.
Provisions Outside of Subchapter K Certain provisions outside of Subchapter K affect the amount of loss that an individual partner can deduct in any
given year. Two major provisions are the at risk limitations and passive loss rules which are next. At risk limitations Although a partner may have
sufficient basis to claim a loss, at risk limitations may restrict a partner from deducting losses where there is no financial risk of loss. IRC Sec. 465(a)
A partner's at–risk amount generally includes his adjusted basis in the partnership taking into account only those liabilities for which the partner has
personal liability. This is in contrast to a partner's outside basis computation which may include the partner's share of all partnership liabilities without
regard to any personal liability on the obligations, Thus, a partners outside basis may include both recourse and nonrecourse liabilities,
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Business Entities, Laws, and Regulations Paper
Running Head: Business Entities, Laws, and Regulations Paper
Business Entities, Laws, and Regulations Paper
Abstract
The following paper includes the consideration of control, taxation, and liability issues for two hypothetical businesses as well as legal, regulatory,
and risk issues each of the two businesses may face. Also included in this paper is a hypothetical hiring manager scenario in which the hiring manager
must choose from numerous applicants who possess various levels of qualification, experience, and education. An applicant must be chosen from the
pool of applicants based on the advertisement placed for a jackhammer operator and any legal or regulatory issues to be considered for each applicant.
Restaurant/Bar ... Show more content on Helpwriting.net ...
Professional Practice Scenario According to the scenario, Akiva and Tara want to open a birthing clinic and take out large loans to finance the
business, which is a medical practice. The business would be a partnership of two medical professionals that would allow Akiva and Tara to form a
limited liability partnership or LLP. An LLP is beneficial for the partners because each partner is only liable for debts or obligations up to the capital
contribution or investments in the partnership (Cheeseman, 2010, p. 274, pp. 1). Forming an LLP begins with filing articles of partnership with the
secretary of state of the state in which the LLP is organized. The LLP laws of the state where the LLP performs business govern the partnership. The
partnership must follow the state laws and regulations to continue performing business in that state. Many states require an LLP to carry a minimum
of $1,000,000 in liability insurance covering negligence, wrongful acts, or misconduct by partners or employees. Taxation of the LLP is the same as
in a general partnership. Each partner is required to file their profits or losses on their personal income tax return. As with a general partnership, an
LLP is required to file an information return with the government so the income or losses are traceable to the individual partners. Because Akiva and
Tara want to open a birthing clinic, they must prepare for liability issues.

Description of Business Entities
Business entities Q1. Sole proprietorship: With a sole proprietorship, the entity owner is personally responsible for all of the organization's actions,
including the financial obligations of the entity. The advantage is that the profits of the organization are not 'taxed twice' as part of the requirements
of the entity. The disadvantage is that the owner can lose his or her personal assets if the organization is in debt or has legal problems. General
partnership: Under a general partnership, the owners of the business share equally in the responsibilities of the business and are equally liable for the
obligations of the organization. The profits may be divided equally on a 50–50 basis between the partners, or in accordance with the original agreement
contracted when the business was set up (General partnership, 2012, Quick MBA). Depending on the state, the partners may be jointly liable for one
another's debts, which means if one partner is liable for a financial obligation and cannot pay the debt; the other partner is liable for the debts of the
partner (General partnership, 2012, Quick MBA). Other states merely have several liability, meaning that the partners are individually liable for their
debts that they gain over the course of doing business, but not personally liable for the partner's debts (General partnership, 2012, Quick MBA). LP: A
limited partnership divides the legal obligations of partnership. The general partner has unlimited liability, just as if he

Essay on Continuous Disclosure
Important notice: ASX has published this abridged guide to assist listed entities and their officers to understand and comply with their continuous
disclosure obligations under the Listing Rules. Nothing in this guide necessarily binds ASX in the application of the Listing Rules in a particular
case. In issuing this guide, ASX is not providing legal advice. Listed entities and their officers should obtain their own advice from a qualified
professional person in respect of their obligations. ASX may withdraw or replace this guide at any time without further notice to any person. More
detailed guidance on the issues covered in this guide can be found in ASX Listing Rules Guidance Note 8 Continuous Disclosure: Listing Rules 3.1 –
3.1B,... Show more content on Helpwriting.net ...
Yes Is the information within one of these categories? 1. It would be a breach of law to disclose the information 2. The information concerns an
incomplete proposal or negotiation 3. The information concerns matters of supposition or is sufficiently definite to warrant disclosure 4. The
information is generated for internal management purposes 5. The information is a trade secret Yes No Is the information confidential? Yes Yes Has
ASX advised that in its opinion the information is no longer confidential? No Yes Would a reasonable person expect the information to be disclosed in
the circumstances?
No
No
No
The information must be disclosed immediately under Listing Rule 3.1
The information is not required to be disclosed under Listing Rule 3.1
Yes
Can I make the announcement about the information straight away? No Yes
Is the market currently trading? No Yes Will the announcement be ready

Entities and Attributes for Fleet Truck Maintenance Essay
At the request of the Huffman Trucking Maintenance Department, Smith Consulting developed entities and attributes for their Fleet Trucking
Maintenance database. Unfortunately, the creator of the database was not available and the development of the database system was not able to be
completed. D Team realizes that the development of a reliable database system is needed to provide for the tracking of scheduled and unscheduled
maintenance for their fleet. Therefore, a database along with forms, tables, queries, and reports that tracks information gathered by maintenance
records, inventory of parts and purchases from vendors is proposed. Huffman Trucking desires to advance and make certain that maintenance is
performed and tracked for ... Show more content on Helpwriting.net ...
The coming maintenance of a vehicle should also trigger an event to ensure that the parts anticipated to be needed for that maintenance are on hand. If
the anticipated parts are not in inventory, then an order should be recommended by report or automatically initiated. Based upon the original content
provided by Smith consulting, a database design was obtained by first analyzing the key subjects, entities, and attributes. The key subjects are the
following: Parts Inventory Purchases, Parts Inventory Issues, Parts Catalogue, Vendors, Parts Purchasing History, Vehicle Maintenance, Tire
Maintenance, Maintenance Descriptions, Vehicle Types, Vehicles, and Maintenance Work Orders along with several entities to support each of the
subjects. The tables were then normalized to third normal form (3NF). Accordingly, each of the tables will be joined by a series of primary and
foreign keys thereby creating relationships among them. This approach will allow the design to be broken into smaller pieces, thus focusing on one
entity at a time. Eventually, these smaller designs were merged into a cumulative design for the entire database. If this project is not implemented, it
will not be possible to automatically share data for each of the trucking hubs. Parts ordering and settlement will continue to be done in an inefficient and
decentralized way. Parts inventory will not be able to be shared between hubs and maintenance schedules will be inconsistent between hubs. There

Special Purpose Entities or Variable Interest Entities:...
Variable Interest Entities
One topic that has generated much discussion and even some "bad blood" in the accounting profession and business community as a whole is
variable interest entities, formerly known as "special purpose entities." One common definition of a variable interest entity is a legal business
structure which does not have enough capital to support itself due to its lack of equity investors. The financial support for the variable interest entity
is provided by an outside source, such as another corporation. A variable interest entity is often created by a corporation to serve as a holding
company, which will hold assets or debt for the creating corporation. A corporation can use such a vehicle tofinance an investment ... Show more
content on Helpwriting.net ...
Often times, these types of agreements result from a contract between two companies that is created to change with identified "triggers" in the market.
The most common types of contractual arrangements that result in the creation of a variable interest entity are options, leases with guarantee of value,
guarantees of asset recovery values, and guarantees of debt repayment. These contractual agreements may exist simultaneously with a less than
majority ownership interest in a variable interest entity. Most variable interest entities are special purpose entities, which are legally structured
entities which are created to serve a specific, predetermined, limited purpose. A special purpose entity may legally exist as a corporation, partnership,
trust, or any other legal entity. Under FIN 46, the primary beneficiary of a variable interest entity must consolidate the VIE in its financial statements.
The primary beneficiary of a VIE is the entity that; will absorb a majority of the VIE's expected losses (more than 50%), and (or) will receive a
majority of the VIE's expected residual returns (more than 50%). In certain situations, expected losses are given more weight than expected residual
returns.
In general, an entity is subject to consolidation if, by design, any of three conditions exist. (1) Equity investment at

Characteristics Of A Business Entity
=Characteristics of Business Entities=
Before we can review each type of business entity, we need to cover a few characteristics that may differentiate each business structure:
' ' 'Liability ' ' ': Liability refers to how much financial responsibility will be held by a business or individual in the event of business losses. In
business terms, this often means who will be held financially responsible in the event that debts cannot be repaid or the business suffers losses from
an action by a court of law. This issue brings about two distinct concepts called unlimited liability or limited liability. Unlimited liability means that
the owners of the business will be held financially liable for loses incurred by the business. What this ultimately means is that creditors or a court of
law can seize an individual's personal assets (their personal home, personal car, personal bank accounts etc.) in order to pay debts that were incurred
by the business. Limited liability, on the other hand, means that often times the owners or investors will only be held liable up to the extent of their
investment. However, courts can still seize personal assets of investors if fraud has occurred that lead to the failure of the business.
' ' 'Double Taxation ' ' ': For certain business structures, primarily corporations, the profits of the entity will be taxed a minimum of two times. When a
corporation earns profit, the corporation will be levied a corporate income tax on those profits. If the

Business entity summary
COMPARISON OF THE FORMS OF BUSINESS ORGANISATIONS Definition Sole
–Proprietorship A business owned by one person Partnership An
association of two or more persons carrying on business in common with a view to profit Limited Partnership (LP) A partnership consisting of two or
more persons, with at least one general partner and one limited partner Limited Liability Partnership (LLP) A partnership where the individual
partner's own liability is generally limited Company A business form which is a legal entity separate and distinct from its shareholders and directors
Owned by One person Generally between 2 and 20 partners. A partnership of more than 20 partners must incorporate as a company under the... Show
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Singapore citizen/ Singapore permanent resident/ Employment Pass/ Dependent Pass holder. If owner not resident in Singapore, he must appoint a
local manager who is ordinarily resident in Singapore Registration Requirements Undischarged bankrupts cannot manage business without court or
Official Assignee's approval Undischarged bankrupts cannot manage business without court or Official Assignee's approval Undischarged bankrupts
cannot manage business without court or Official Assignee's approval Undischarged bankrupts cannot be a director and cannot manage a company
without court or Official Assignee's approval Quick and easy to set up Quick and easy to set up Quick and easy to set up Quick and easy to set up
More costly to set up and maintain Easy to administer and manage Easy to administer and manage Easy to administer and manage Fewer formalities
and procedures to comply with than a company More formalities and procedures to comply with Registration cost is minimal Registration cost is
minimal Registration cost is minimal Registration cost is relatively minimal and fewer regulatory

Entity Relationship Diagrams
An entity relationship diagram is the basic design model for any database. It is the major deliverable for a conceptual database design. It is the logical
organization of any data in the database and is usually made up of three components namely; entities, attributes and relationships. Entities are the major
categories of data in the database and are usually represented by rectangles. Attributes are the characteristics of the entities and are usually written in
the rectangle. Relationships are the connections between entities and are usually represented using lines joining the rectangles. Entities that share
major characteristics are known as entity types, and are also referred to as classes. An entity instance is the individual occurrence of one entity type. It
is important to define entity types as it makes it easier to determine the requirements of the database and how it will be structured.
In defining an attribute, the analyst must state the importance of the attribute, the value of the attribute and whether the value of this attribute can
change. When drawing an entity relationship diagram, the analyst must be aware of the following types of attributes; multi–valued attributes, required
attributes, optional attributes, composite attributes and derived attributes. When showing relationships, an analyst must be aware of three types of
relationships; unary (between instances of one entity type), binary (between instances of two entity types), and ternary (between

Types Of Business Entity For A Business
Of all the choices you make when starting a business, one of the most important is the type of business entity you select for your company. Not
only will this decision have an impact on how much you pay in taxes, it will affect the amount of paperwork your business is required to do, the
personal liability you face and your ability to raise money. It 's not a decision to be entered into lightly, either, or one that should be made without
sound counsel from business experts. "Kalish says it 's important for business owners to seek expert advice from business professionals when
considering the pros and cons of various business entities". The business entity I have chosen for my business is sole proprietorship. I don't want to
be responsible if someone else makes a bad chose for the company. I want to run my business my way. If anything goes wrong it is completely my
fault not anyone else's. Types of Business Entities The type of business entity you choose will depend on three primary factors: liability, taxation and
record–keeping. Here 's a quick look at the differences between the most common forms of business entities: A sole proprietorship is the most
common form of business organization. It 's easy to form and offers complete managerial control to the owner. However, the owner is also
personally liable for all financial obligations of the business. A partnership involves two or more people who agree to share in the profits or losses of a
business. A primary

In the 15th section of The Worldhood of the World,...
In the 15th section of The Worldhood of the World, Heidegger writes about the how we can experience things phenomenologically if we pay attention
to our everyday environment. He calls this "Being–in–the–world" or our "dealings". Each entity that we encounter has a Being, and in order to
investigate those Beings, we must closely investigate how we deal with the environment. Entities that we encounter are not object, but what gets used,
produced and more, such as a tool. Entities are not defined as "Things" rather, the way in which humans interact with them changes their meaning, and
transform these entities into something that can be manipulated. Heidegger calls the entities which we encounter "equipment" however, he also ... Show
He ends the section by asking whether people are able to grasp the concepts of phenomenology.
In section 16, Heidegger first talks about the possibility that if the Dasein, humans, are able to phenomenologically experience Being–in–the World
(such as objects and consciousness) instinctively, phenomenon could be "held at bay" and studied. He then goes on talking about the un–usability of
"ready–to–hand" objects. He begins by talking about equipment being conspicuous, something that might be damaged or broken. By losing its usability,
the tool also loses its usefulness and character as "ready–to–hand" and is now pure "presence at hand". However, the equipment isn't perceived
differently than before. For instance, a broken hammer isn't perceived as a piece of steel and wood, but it would still preserve its identity as a hammer.
He then talks about obtrusiveness. He explains that equipment can be unusable because of missing pieces. The more important the missing piece is, the
more unusable the equipment is. Lastly he explains that unusability can characterized as something that "stands in our way". Heidegger calls this
obstinacy. Conspicuousness, obtrusiveness, and obstinacy are capable of bringing presence–at–hand characteristics to ready–at–hand objects through
modifications of the equipment. However, even if this is the case, we don't lose sight of the identity and function of the tool, because we are so

Business Entities : A Business Entity
Business Entities:
Each business entity is structured differently and, as a result, has unique tax implications. The types of business entities covered in this course were:
sole proprietorships, partnerships, C Corporations, S Corporations, and Limited Liability Companies (LLC). The entities were differentiated by the
number of owners and/or shareholder, whether they are a pass–through entity or not, and the level of liability the shareholder(s)/ owners(s) are
responsible for. A sole proprietorship, which is a business with one owner who assumes unlimited liability, as well as general and limited liability
partnerships, which have at least two owners (with potentially some of the owners assuming liability only to the extent of their ... Show more content on
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When a C Corporation is authorizing and paying dividends, it needs to consider the amount of debt currently being carried, in order to ensure enough
funds are being maintained to pay these debts. However, there are not any percentage or dollar limitations imposed on the amount or frequency of
such distributions. Having said this, the IRS does regulate the recording and reporting of such activity, since it does have tax implications. Specifically,
when dividends are given to C Corporation's shareholders, the company is passing money onto the owners. This is different from a traditional
pass–through because in a pass through entity, all of the company's annual income, expenses, deductions, etc. are required to be listed on the
shareholders tax return. In contrast, the IRS only requires that the amount of the total annual dividend distribution is recorded as income on the
shareholders filing. Having said this, it is important to note that all income is first taxed at the corporate rate, which can be more favorable than an
individual's tax rate, and then upon dividend distribution, the distributions are taxed again at the individual's tax rate. This concept is known as double
taxation and is one of the main disadvantages of this type of entity (Everett, Hennig, & Nichols, 2013).
In contrast, to a C corporation an S corporation is subject to single taxation, since it is a pass–through entity. Having said this, an

Singular Entity
As I am skimming through the numbers etched on my report card, I am disappointed by the decrease in my grades, and the reason is not ambiguous
to me. The age of adolescence is a time where teenagers are exposed to development and it is also an age where they become vulnerable to the first
negative streaks of reality. The disintegration of my parents' marriage contributed to my lowered grades. My natural love for my parents couldn't accept
their relationship falling apart, and this led to a distraction from studies and an inability to concentrate on things. I viewed "parents" as a singular entity,
if they separated, that single entity would have been shattered. I understand however, that I should have been motivated nonetheless. I recall... Show
Obstacles are placed before us to determine how much we really want to achieve something; the obstacles should not prevail over our desires and
motivations unless we lack perseverance. Allowing this dream of mine to evolve into reality will be time consuming and difficult, but I have to
input a great deal of effort. Although my dad no longer asks me what I want to be when I grow up, it is still an inquiry that wanders in my mind
more than ever. I am certain that my dream will be fulfilled as long as I continue to follow the correct side of the

Selecting A Form Of Entity For Doing Business
Selecting a form of entity for doing business.
Tax payers, who are business owners, including the self–employed, have choices regarding how to set up their entity for tax purposes. Generally, the
following options are available for tax payers:
Sole Proprietorship
Single Member Limited Liability Company
"S" Corporation
"C" Corporation
Sole Proprietorships do not file any documents, including annual reports, with the Secretary of State. Accordingly, they do not have legal or creditor
protection.
Sole Proprietorships prepare Schedule C as part of their Individual Income Tax returns, with exception to farmers who must file Schedule F. The
Schedule C is the most simplistic form for tax filing purposes, when it comes to business. Sole Proprietors may need to file Schedule SE.
Generally, self–employed business owners can set up fringe benefits (i.e. self–employed health insurance deduction and retirement plan) for their
business. Self–employed health insurance and retirement deductions are reported on page 1 of the individual income tax form as an adjustment to
gross income. Discrimination tests have to be met for the self–employed health insurance if the sole proprietorship has employees.
Under the family member 's rule, as stated in Circular E of the IRS: "Child employed by parents. Payments for the services of a child under age 18 who
works for his or her parent in a trade or business aren 't subject to social security and Medicare taxes if the trade or business is a

The Legal Entity System Has Profoundly Affected The...
1.0 Introduction The legal entity system has profoundly affected the process of human economic and social development. Needless to say, the
connotation of the legal entity system is very rich, and that the company has an independent personality and shareholders bear the limited liability is
the two basic features (Tweedale, G., Flynn, L., 2007). Of course, the company 's independent personality is based on the separation of corporate
property and shareholder property. Under this circumstance, the company shall enjoy their rights, fulfil obligations, and independently bear civil
liability in its own name (L.C.B., 1992). However, with the development of commodity economy, and the deepening and extensive use of the legal
entity system, the... Show more content on Helpwriting.net ...
3.1.1 Fraud or misrepresentation Fraud or misrepresentation is one of the most frequent factors in piercing the corporate veil. Fraud is a deliberate
concealment of the truth and a false statement leading the other party to engage in certain acts and causing loss or injury, which can be seen in the
case" GILFORD MOTOR Co. v HORNE Ltd. (1933)". Fraud includes civil fraud and criminal fraud, and fraud is often associated with
misrepresentation. Inaccurate statements in the litigation of piercing the corporate veil generally include misrepresentation of the company 's assets
and financial conditions, as well as misrepresentations of paying to the parties. Professor Thompson is of the opinion that when the act is found to be
"fraud" by the court, the act is often used as evidence to support the "misrepresentation" if the fraud claim cannot be substantiated (Hodge, L., Sachs,
A., 2008). 3.1.2 Shareholders' control and domination In order to pierce the company veil, the plaintiff needs not only to prove the "domination and
control" behaviour, but also to prove that there is fraud or abuse unfair form of corporate. In order to pierce the company veil, that shareholders only
control/dominate the company is not enough, and there must be "fraud or misrepresentation" evidence. In this regard, the standard of piercing the veil
of the company is also particularly stringent. If there is only the fact that the shareholder is a

The Five Types Of Business Entities
Choosing between the many business entities offered can be a challenge for some and finding the different pros and cons to each entities. In this essay,
I will examine and analyze each business entity that is discussed in our class textbook. The book displays five types business entities. These entities
include corporations, limited liability companies, limited liability partnerships, partnerships and lastly, sole proprietorships. For each business entity, I
will go in–depth and define each usage and develop some pros and cons ideas. A business entity can be defined as an association that launches itself as
a distinct presence for devotions with taxes.
The corporate structure can be quite complex and expensive than most of the business entities. Acorporation is an impartial legal unit that is discrete
from the proprietors. It entails obeying with guidelines and tax requests. One of the major advantages for a business holder that ... Show more content
on Helpwriting.net ...
Partnerships come in two categories, general and limited. With a general partnership, associates succeed the company and undertake accountability
for the partnership's debts and other responsibilities. In a limited partnership, partners serve as only investors. The partners have no power over the
company and they are not focused with the similar liabilities as general partners have. A general partnership would be easier to practice if two or
more partners who strive to be vigorously convoluted in the company. One of the major advantages of a partnership is the tax treatment it entails. A
partnership does not pay tax on its earnings but passes through any profits or losses to the individual partners. During tax season, the partnership has
to file a tax return that accounts for its income and losses. Personal liability is a main distress if you use a general partnership to develop your

Company as a Separate Legal Entity
COMPANY AS A SEPARATE LEGAL ENTITY Definition: A legal entity, typically a business, that is defined as detached from another business
or individual with respect to accountability. A separate legal entity may be set up in the case of a corporation or a limited liability company, to
separate the actions of the entity from those of the individual or other company. Meaning: If a business is a separate legal entity, it means it has some
of the same rights in law as a person. It is, for example, able to enter contracts. In New Zealand, a company is a separate legal entity from its owners
(shareholders) and can, for example, be sued, and enter into contracts in the name of the company, not the shareholders. Sole traders and partnerships...
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The government wanted to diversify its supply base to avoid the risk of its few suppliers being crippled by strikes. His warehouse, as a consequence,
was full of unsold stock. He and his wife lent the company money, and he cancelled his debentures, but the company needed more money, so they
sought ВЈ5,000 from a Mr. Edmund Broderip. Mr. Salomon assigned Broderip his debenture, the loan with ten per cent interest and secured by a
floating charge. But Salomon 's business still failed, and he could not keep up with the interest payments. In October 1893, Broderip sued to enforce
his security. The company was put into liquidation. Broderip was repaid his ВЈ5,000, and the debenture was reassigned to Salomon, who retained the
floating charge over the company JUDGMENT High Court: When the company went into liquidation, the liquidator argued that the debentures used
by Mr. Salomon as security for the debt were invalid, on the grounds of fraud. The judge, Vaughan Williams J. accepted this argument, ruling that
since Mr. Salomon had created the company solely to transfer his business to it, the company was in reality his agent and he as principal was liable
for debts to unsecured creditors. Court Of Appeal: The Court of Appeal also ruled against Mr. Salomon, though on the grounds that Mr. Salomon had
abused the privileges of incorporation and limited

Choosing A Business Entity : Case Study
Choosing a Business Entity After extended negotiations, May of 2001, Mr. Henry Phillips agreed to acquire the franchises, assets, and assume the
liabilities of Telecable Communications. In order to make the purchase, he sought the help of six investors, two which were appointed by a friend, Mr.
Carter. His ultimate goal was to choose a business entity that would accommodate the different interests of the different parties. Alimited liability
company (LLC) is Mr. Phillips' best option; a majority of the objectives is met when compared to the alternatives. This business entity allows for the
six investors to be free from personal liability and to take advantage of tax losses. Furthermore, the entity allows for the three partners to control day to
day operations, and repay the requested finder's fee to Mr. Carter.
The Form of the Transaction
Meeting the Objectives of the Investors Mr. Phillips believed that the limited partnership and S corporation were very similar. The tax advantages and
disadvantages of each form seemed to be of equal weight. As a result, Mr. Phillips requested that the decision be made based on the form that would
best fit the various interests of the groups involved. The outside investors wanted to insulate themselves from any possibility of personal liability. The
LLC allows for limited liability, as profit and losses are allocated to mirror the economic risks of each LLC member. LLCs offer greater flexibility in
allocating profits and losses, when

Separate Entity Research Paper
Separate Entity
An incorporated business is a separate entity from its owner or shareholders. This means you'll need separate bank accounts and credit cards for your
business. You may need to provide business identification–– rather than just personal identification –– when withdrawing money from the bank. You'll
also sign business contracts as a representative of your business rather than as yourself. Some new business owners are accustomed to signing business
contracts and documents as themselves, but if you continue to do this after you incorporate, these documents might not be legally binding or could
leave all parties unclear about who is responsible for the document –– you or your business.
Limited Liability
Incorporation greatly limits

Entity-relationship Model and Mountain View Community
Turgut TezirTEZIR–1 CS 504.2354 Mountain View Community Hospital Project Case 3 Project Question: 1. Why would Mountain View Community
Hospital want to use entity–relationship modeling to understand its data requirements? What other ways might the hospital want to model its
information requirements? This hospital wants to use E–R modeling to understand data requirements. E–R modeling is very easy to understand and
shows all the business rules. Entity–relationship modeling is logical representation of the data for an organization or for a business area. The E–R
model is expressed in terms of entities in the business environment, the relationship among those entities, and attributes of both entities and their...
Make any additional assumption you consider necessary in order to represent this situation. Yes, it allows the same treatment to be performed more
than one on the same patient by the same physician. Turgut TezirTEZIR–5 CS 504.2354 Mountain View Community Hospital Project Case 3 Project
Question: 1. Is the ability to model supertype / subtype relationships likely to be important in a hospital environment such as Mountain View
Community Hospital? Why or why not? A supertype / subtype relationship is important. For example: Hospital might supply different kids of items for
the patients and for the general needs for the hospital Another Example is Patient. Patient can be in patient and out patient. We can give lots of different
kinds of example about supertype / subtype like this. 2. Can the business rules paradigm and the ability to easily define, aliment and maintain business
rules be used as competitive advantage in a hospital environment such as Mountain View Community Hospital? Why or why not? If the Mountain View
Community Hospital wants to be successful in the future, they have to change their business rules depend on the environment. Therefore business
rules allow business to change its processes. In this case Business rules paradigm can be used for competitive advantage 3. Do there appear to be any
week entity in the description of the data requirements in

Choosing the Right Business Entity
Choosing the Right Business Entity
By
Rosa Martinez
Professor Smith
English 315
February 24, 2012
TRANSMITTAL
TO:Small Business Owners
FROM:Rosa Martinez
DATE:February 24, 2012
–––––––––––––––––––––––––––––––––––––––––––––––––
SUBJECT:Choosing the Right Business Entity
–––––––––––––––––––––––––––––––––––––––––––––––––
Enclosed is the Justification Report covering information related to different types of entities that could be chosen to establish a business. Furthermore,
the report explains in full details the advantages and disadvantages of each business entity, and how those factors could fulfill the needs of each
particular individual.
To ensure that the right structure is selected, I will be glad to further ... Show more content on Helpwriting.net ...
The IRS stated that the sole proprietorship is much more likely to underreport its income. Sub–Chapter S Corporations Advantages * Limited Liability
to the shareholders (owners) personal assets. * Investors are more likely to invest in this type of entity due to its protection, and easy acquisition of the
company stocks. * Pass through entity: This simply means that in most circumstances all income pass to the shareholders to be reported under their
personal income tax returns; therefore, profits are being taxed once vs. a C corporation where it is first taxed as the corporate level, and then in the
shareholders personal return as dividends. Tax as dividends are tax max at a fifteen percent rate (15%) but it is still a double taxation. Most
businesses have losses at the beginning of their operations. Having this type of entity can save in personal income tax against other income the

shareholders report. Losses can be carried backwards during two (2) years, and or forward for twenty years if not fully used.
Disadvantages * Very complex to keep in compliance with federal and local government. * Active shareholders compensation is required in a payroll.
This requirement can be very expensive for a micro company since payroll taxes matching FICA (Federal Insurance Contribution Act) would be
required. * Additional reporting in business records, in order to keep track of

A Company Is A Separate Legal Entity
The concept of a company being a separate legal entity is the most striking illustration in separating the company from its owners. A paramount
principle of corporate law is that no shareholder or member of a company is made liable for the obligations incurred by such incorporations A
company is different from its members in the eyes of law. In continuations to this the opposite also holds true in the sense that neither can the
company be held liable for the acts of its members. It is a fundamental distinction that a company is distinct from its members. The words, "corporate
entity is not imaginary or fictitious but quite real, whereas corporate personality is a fiction whose origin is to be found in the psychological
tendency towards personification" gives an idea that the legal doctrine of corporate personality was built around the idea of a sovereign grant of
certain attributes of personality to a definable group, which was engaged in an enterprise. When a company is incorporated it is treated as a separate
legal entity distinct from its promoters, directors, members, and employees, which confers the benefit of not being responsible for the companies debt
on the members on the company. However even though a company is a separate legal entity and it attains the advantage of not laying the responsibility
of company's debt on the... Show more content on Helpwriting.net ...
Unlike partnership, a company is distinct from the members and is capable of enjoying rights and duties in its own capacity, which is not the same
as those of its members. As Lord Macnaughten in Solomon v Solomon & Co Ltd case quotes "the company is at law a different person altogether
from the subscribers and the company in law is not the agent of the subscriber or trustee for them. Nor are the subscribers as members liable, in any
shape or form, except to the extent and in manner provided by the

Business Entities : Advantage And Disadvantages
Business Entities: Advantage and Disadvantages
Dwayne M. Morris
BUSN 370: Business Law
Regent University
Clement Abrams
April 17, 2016 Abstract
The four legal business entities are reviewed and compared to outline the advantages and disadvantages of each type for business owners. The Sole
Proprietorship, Partnership, Limited Liability Company, and Corporation will all be outlined. Furthermore, details regarding ownership structures,
options for raising capital, taxation, and the impact an owner's role in day to day operations and management can have in establishing individual
liability limits are factors that are addressed. This eventually results in finding that the Limited Liability Company
(LLC) appears to provide the ... Show more content on Helpwriting.net ...
(Johnson, 2015, p 161). In addition, all business profits and losses are reported on the owner's personal tax return and are taxed at the owner's
effective tax rate. The business entity, itself, is not taxed separately. Given, that there are no formal requirements to establish this entity, a business
license, an idea, sufficient startup funds and the desire to be a business owner are effectively all that are needed to become operational. This is no
doubt why 70 percent of U.S. businesses are owned and operated by sole proprietors (Beesley).
However, despite their large numbers, ease of formation and the entity not being taxed, sole proprietorships have the disadvantage of its owner
having unlimited liability for business losses. While the Sole proprietor owns all the assets, he/she also owes all business liabilities in their entirety
(Chow, 1942, p.157). This means that the owner's personal assets can be used to satisfy business liabilities. However, business owners do have the
option of purchasing a liability or umbrella insurance policy to offset or potentially eliminate the need to use personal assets to cover business losses.
This liability insurance should include worker's compensation, auto, general liability, and property and casualty coverage. Insurance costs will vary
from business to business

Business Entities: Corporations Vs. Partnerships. The...
Business Entities: Corporations vs. Partnerships The business entities of corporations and partnerships share many similarities, however key difference
exist, primarily in terms of formation, taxes and liability. This section will largely address the issue of liability, in terms of the effects of damages,
disclosure requirements and personal liability for both corporations and partnerships. Additionally Amazon will be examined as a partnership rather
than a corporation to further illustrate these differences.
Damages Estimate
According to the FASB, guidance on contingent liabilities applies to all entities, therefore corporations and partnerships should approach damage
estimates similarly. FASB specifies that contingencies be measured at... Show more content on Helpwriting.net ...
While requirements for reporting debt estimates and other contingent liabilities remain the same for corporations and partnerships, the implications of
damage are far more severe for partnerships.
Disclosure Requirements Publicly traded companies are subject to the reporting and disclosure requirements of the Securities Exchange Commission
(SEC). The laws that govern the securities industry were established to provide transparency to investors, creditors and shareholders alike. According
to Hoyle, Schaefer & Doupnik, (2015) there are seven major disclosure requirements, the first being a five–year summary of operations to encompass
sales, assets, income from continuing operations. Followed by a description of business activities, a three year summary of industry segments to
include foreign and domestic operations, a list of company directors and executives, quarterly market price of common stock for the last two years,
restrictions on the company's ability to continue paying dividends, and finally, an analysis of the company's financial condition, changes in the
conditions and results of operation.
In contrast, private entities such as partnerships and companies with less than $10 million in assets and under 500

Entity-Relationship Diagrams and the Relational Model
Review Entity–Relationship Diagrams and the Relational Model
CS 186, Fall 2007, Lecture 2 R & G, Chaps. 2&3
A relationship, I think, is like a shark, you know? It has to constantly move forward or it dies. And I think what we got on our hands is a dead shark.
Woody Allen (from Annie Hall, 1979)
Why use a DBMS? OS provides RAM and disk
Review
Why use a DBMS? OS provides RAM and disk
– Concurrency – Recovery – Abstraction, Data Independence – Query Languages – Efficiency (for most tasks) – Security – Data Integrity
Data Models
DBMS models real world Data Model is link between user's view of the world and bits stored in computer Many models exist We think in terms of..
– Relational Model (clean and common) – ... Show more content on Helpwriting.net ...
– Owner entity set and weak entity set must participate in a one–to–many relationship set (one owner, many weak entities). – Weak entity set must have
total participation in this identifying relationship set. name ssn lot cost pname age
Basically means "at least one" name ssn Employees lot Manages since did dname budget Departments
Works_In
Means: "exactly one" since Employees
Policy
Dependents

Weak entities have only a "partial key" (dashed underline)
Binary vs. Ternary Relationships ssn name lot Covers pname age
Binary vs. Ternary Relationships (Contd.)
Previous example illustrated a case when two binary relationships were better than one ternary relationship.
If each policy is owned by just 1 employee:
Employees
Dependents
Bad design
Key constraint on Policies would mean policy can name ssn only cover 1 dependent! Think through all the constraints in the 2nd diagram! policyid lot
Policies cost pname age
Employees Purchaser
Dependents
Beneficiary
An example in the other direction: a ternary relation Contracts relates entity sets Parts, Departments and Suppliers, and has descriptive attribute qty. No
combination of binary relationships is an adequate substitute. (With no new entity sets!)
Better design policyid Policies cost
Binary vs. Ternary Relationships (Contd.) qty Parts Contract Departments
Summary so far
Entities and Entity Set (boxes) Relationships and Relationship sets

Entity Relation Diagram
Contents ERD (Entity Relation Diagram)2 2.1 History of ERD2 2.2 Building Blocks2 2.2.2Relationship2 2.3. Diagramming Conventions3 MS ACESS
TABLE5 3.1 Parts of Table6 3.2 Creating Tables in Access6
Chapter No 2
ERD (Entity Relation Diagram)
2.1 History of ERD
An entity–relationship model (ERM) is an abstract and conceptual representation of data. Entity–relationship modeling is a database modeling method,
used to produce a type of conceptual schema or semantic data model of a system, often a relational database, and its requirements in a top–down
fashion. Diagrams created by this process are called entity–relationship diagrams, ER diagrams, or ERDs.
This technique was developed by PETER CHEN in 1976 since ... Show more content on Helpwriting.net ...
If an entity set participates in a relationship set, they are connected with a line.
Attributes are drawn as ovals and are connected with a line to exactly one entity or relationship set.
Cardinality constraints are expressed as follows: * A double line indicates a participation constraint, totality or subjectivity: all entities in the entity set
must participate in at least one relationship in the relationship set; * an arrow from entity set to relationship set indicates a key constraint, i.e.
infectivity: each entity of the entity set can participate in at most one relationship in the relationship set; * A thick line indicates both, i.e. objectivity:
each entity in the entity set is involved in exactly one relationship. * an underlined name of an attribute indicates that it is a key: two different entities
or relationships with this attribute always have different values for this attribute.
Attributes are often omitted as they can clutter up a diagram; other diagram techniques often list entity attributes within the rectangles drawn for entity
sets. Chen's notation for entity–relationship modeling uses rectangles to represent entities, and diamonds to represent relationships appropriate for
first–class objects: they can have attributes and relationships of their own.
Chapter No 3
MS ACESS TABLE
Microsoft Office Access, previously known as Microsoft Access, is a relational database management system from Microsoft that

A Business Entity Structure Like Limited Liability Company
In today's era they're many business structures like sole proprietorships, partnerships, limited liability companies (LLC), and corporations in which
individuals uses to start their own business. Any types of business structure that you may choose will have legal and tax implications (SBA, 2016). If I
were to start my own business, I would choose a business entity structure like Limited Liability Company (LLC). A limited liability company is a mix
type of legal structure that provides the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership
(SBA, 2016).
Types of Business Structure
There are several business structures that one could use to start a new business and to make a present business much more operative and inclusive. The
business structures that will be talked about in the paper are:
Sole proprietorship
Partnerships
Limited liability companies (LLC)
Corporations
Sole Proprietorship
A sole proprietor is the most modest and common structure chosen to start a business (SBA, 2016). Someone who owns an independent business is
usually a sole proprietor. They are no legal action needed to form a sole proprietorship. Sole proprietors are entitled to all profits and are responsible for
all your business's debts, losses and liabilities (SBA 2016).
Steps to form: Sole proprietorship is a popular business form due to its simplicity; ease of setup and at minimal cost (Staff, 2016). You must obtain
required

Salomon V Salomon And The Legal Entity
Salomon Doctrine According to Companies Act 2006, once incorporated a company have its own legal personality. By all means, it is separated from
its shareholders or directors. The separate legal entity principle is well–known and causes many debates. Throughout the years the fundamental
doctrine established by the historical case Salomon v Salomon went through many subsequent developments. Since the enactment of Limited Liability
Act 1855, the case was the first that explored the effects of the separate legal entity. At first instance and Court of Appeal the Salomon's appeal was
rejected, therefore the company was an agent. The reasoning of trial judge, Vaughan Williams J concluded that Salomon was an agent of a company
that was formed... Show more content on Helpwriting.net ...
The key problem was that according to Otto Kahn–Freund the 'courts had failed to give ... protection to the business creditors', which is the result of
the principle. Limited liability is an instrument that basically encourages the process of development of the economy. Lack of limiting the liability, the
risks of investing would be significantly higher and the obligations will expand. The separation of the corporate entity, is a protection and overall,
without its establishment the results will be lower activity in the entire economy. However, on the creditors' point of view regarding the liability, there
is a restriction of the assets and they cannot exceed company's assets, which in case of wound up the unsecured creditors' claims could not be fully met.
Development of the separate legal entity principle Since ninetieth century, the Salomon principle has been reviewed by series of cases and through its
development, the common law implemented different approaches regarding the circumstances of upholding the doctrine. Although there are critiques
and attempts of disregarding the principle of corporate personality the courts affirmed the Salomon doctrine. Except the common law there are also
statutory exception and it should be also noted that in certain circumstances such as disclosure of

Factors Determining The Form Of Legal Business Entity
Factors Considered In Deciding the Form of Legal Business Entity
When starting a new business, it is very important to decide the form of legal entity which may be appropriate based on a number of factors. The legal
entity can be sole proprietorship, partnerships (general and limited liability partnerships), limited liability companies, or corporations. One of the most
important factors to consider when deciding the appropriate form of legal business entity is complexity. If one has limited capital and wishes to start
a simple business unit, then sole proprietorship is the most appropriate. The second factor is the need for protection from the risk of liabilities. If the
new business operates in a volatile industry where it is possible to experience huge financial losses, then a limited liability company or partnership can
be considered appropriate. The ease of formation is another factor. It is easy to form a sole proprietorship as opposed to other forms of businesses.
The issue of taxation may also influence the form of business entity that a person or group of people may choose. The aim is always to minimize tax
as much as possible. According to Chiappinelli (2006), another important factor that should always be considered is the ease with which capital can
be raised. It is easier to raise capital in limited liability companies or in corporations than it is in sole proprietorship.
i.Taxation of various forms of business entity
In sole proprietorship, the business entity

The Foreign Entity
There are a few significant tax considerations of which you should be aware if you decide to take Tout Suite, Inc. global. It is important to first
decide how you will structure the foreign entity. You have a few options available to you, and the details of each alternative are described below. We
have also included information on tax consequences of your move to Belgium. It is important to note that the United States currently has an income tax
treaty with Belgium which may impact both Tout Suite's income and your individual income in an attempt to minimize doubletaxation.
The first option for organizing Tout Suite's foreign entity is to structure it as a foreign subsidiary. This form will create a separate legal entity that will
be subject to the laws of Belgium and will allow the company to defer U.S. taxation on the foreign–source income until the income is repatriated to the
U.S. In addition, by choosing to be structured as a foreign subsidiary, the subsidiary will have more control over when to recognize income, which
also affects the timing of the foreign tax credit. However, any losses incurred by the foreign subsidiary will not be deductible on Tout Suite's U.S. tax
return.
Since Tout Suite will be a 100% owner of the foreign entity, it will be considered a "controlled foreign corporation" (CFC). As such, it will be subject
to Subpart F rules, which would require Tout Suite to recognize some of its income each tax year as foreign base company income, regardless

Web Api Using The Entity Framework
Chapter 5: "Creating Applications using AngularJS, Entity Frameworks, and ASP.Net MVC", focuses on how to connect to database using Entity
Framework. In this chapter we will discuss how to create Web API using ASP.Net MVC and how to consume these Web API with AngularJS. This
chapter organized as follows.
Using Entity Framework o Creating a data model from existing database
Creating Web API using Visual Studio o Working with JSON Object in ASP.NET MVC using Angular
Using Angular JS with ASP.NET MVC o Sending and Receiving JSON Object to Angular JS
Using Entity Framework
ActiveX Data Objects (ADO), in .Net framework ADO.Net is a set of classes to expose the data access services for .Net framework developer.
ADO.Net contains the set of components to create distribution and data–sharing applications. Using ADO.Net we can create front–end database clients
and data access layer to use by the application. ADO.Net frequently used the application developer to access database in relational database systems
such as SQL, Oracle and so on.
ADO.Net is very powerful framework to use for accessing data. It has been in the market since many years. ADO.Net Entity Framework is an
enhancement to traditional ADO.Net, which enable developer to develop data access application by using a conceptual data model instead of directly
connecting to the relational database. With Entity Frameworks, the amount of code and the maintenance required for data oriented application
significantly will be

The Relationship Between A Corporation And A Private...
Introduction Today's world is full of corporations doing business in every industry and sector that we can imagine. These corporations are set up to
separate the business from its owners and insulate their assets. There are times, however, in the interest of equity when the corporate veil is allowed to
be lifted and the assets of the owners are exposed. (Dignam) Throughout this paper, I will discuss the difference between a corporation and a private
entity and when the corporate veil can be lifted according to the cases in the UK law.
Private Entities Versus Corporations In the United Kingdom, different business structures are available to those who wish to establish a business.
There are four forms that a company can take in the United Kingdom. These forms are as follows:
1)A private company limited by shares (members' liability is limited to the unpaid share capital except where any personal guarantees have been given).
2)A private company limited by guarantee (members' liability limited to the amount undertaken to be contributed by members.
3)A private unlimited company (unlimited liability of members).
4)A public limited company (members' liability is limited to the unpaid share capital and at the time of incorporation a plc must have ab allotted share
capital of 50,000.00 pounds)" (Rosenfalck).
The minimum requirements for setting up a private limited company is that you must have one director, registered in the United Kingdom, and have at
least one

What Is Separate Legal Entity?
The veil of incorporation state the company is a separate legal entity from its members such as shareholders, directors and employees. (Lawyr.it,
2014) Separate legal entity defines a company can employ its own members, limited liability and ability to hold property in its name. Normally,
the courts would not look behind the veil of incorporation because it is separate legal entity. The courts agree to lift the veil of incorporation
where 'justice of the case demands' or if the veil has been misused. (Legalserviceindia, 2014) Once the courts lift the veil of incorporation, there are
no more separate legal entity, so who are using the veil of incorporation as a protection to escape from legal responsibility after they go against the
law and now they can be sued by innocent party. The courts will lift the veil of incorporation when it is in a certain of circumstances. There were
some circumstances need to remove the veil of incorporation and it were supported by some case law. Firstly, the main purpose of promoter set up
a company is to avoid or dishonestly evade an existing legal duty or to commit fraud. From the case law of Gilford Motor Co. Ltd. V Horne (1933)
(Economictruth, 2013)as a mirror to reflect the circumstances of dishonestly evading the promoter's existing legal duty. Mr Horne was a car salesman
for Gilford Motor Co.Ltd and he left the company. He was personally bound by a contract which mentioned after he left the company, he wasn't
allowed trade with his

Description Of A Business Entity That Ms. Growne
BACKGROUND: Sue Growne, client G14159, is looking to purchase a tavern, which would include both realty and personality. So ReaLand CPA's
could better serve this client, I, Bobbi Paternico was tasked with researching the legal and tax options available to the client, based upon the entity
utilized for the purchase and the method of purchase. ANALYSIS: The type of business entity that Ms. Growne selects can have both legal and tax
implications. Having said this, there are some tax and legal considerations to examine regardless of the type of purchasing entity. Specifically, one of
the first decisions that Ms. Growne should make, is whether she wants to acquire the assets of the tavern or the stock/interests in the business... Show
The statement of reserves should be reviewed, since the acquisition of the tavern, through the purchase of the seller's interest, results in the buyer,
Ms. Growne accepting both known and unknown liabilities of the business prior to her ownership. In addition, by reviewing the financial
statements to look at the net operating gain or loss, Ms. Growne can determine if there is a loss she can offset against her other sources of income.
For some individuals, the idea of being able to offset other income with these losses incurred prior to ownership is appealing, due to the tax benefit
that may result. However, if the buyer does not have significate income to be offset or is not in a higher tax brackets, this benefit of the acquisition
through interest becomes less attractive. In addition, if the sellers basis in the assets are significantly less than the assets fair market value, the buyer
is likely to incur greater gains on the assets in the future, resulting in a higher taxable income and leading to negative tax implication. In contrast, if the
assets of the business were purchased, the buyer would not be susceptible to prior liabilities and the seller must examine their basis for each asset,
compare it with the assets current market value, and incur any applicable gains or losses, intern shifting the tax consequences of an increase in

Importance Of Choosing A Business Entity
Monique Desir– Choosing a Business Entity The Importance of Choosing a Business Entity As an accountant and Tax Preparer in New York,
Monique Desir works with many tax payers who require a business entity. There are many factors that go into the choosing of a business entity, and
the implications for the business can be large. If you are working towards a new business, find a tax professional who knows the ins and out of
business entities in your area. What is a Business Entity? A business entity is not only the identity of the company you are creating, but also
determines the type of legal structure your new business will have. This decision is complicated, and possibly the most important item you will decide
when you start a new business venture. There is no single type of entity that is better than the rest. Your choice will have to be made based upon your
requirements and future desires. There are five commonly used business entities; partnerships, sole proprietorship, C corporations, S corporations, and
Limited Liability Companies. To pick the business entity that will suit your needs, you should consult a local Tax Preparer or accountant. What Your
Entity Will Effect Choosing a business entity has long reaching considerations. One of the most important aspects of this choice is the resulting taxes
that your business (and you) will have to pay. Each type of business entity is subject to a different form of taxation. Some entity forms have better
opportunities to

Huffman Trucking Entity-Relationship Model
The Entity–Relationship Model ––––––––––––––––––––––––––––––––––––––––––––––––– Top of Form Bottom of Form Database Design Goal of
design is to generate a formal specification of the database schema Methodology: 1. Use E–R model to get a high–level graphical view of essential
components of enterprise and how they are related 2. Then convert E–R diagram to SQL DDL, or whatever database model you are using E–R Model
is not SQL based. It 's not limited to any particular DBMS. It is a conceptual and semantic model – captures meanings rather than an actual
implementation The E–R Model: The enterprise is viewed as set of * Entities * Relationships among entities Symbols used in E–R Diagram * Entity –
rectangle... Show more content on Helpwriting.net ...
Lines have no arrows. Use straight lines only] Relationships Relationship: connects two or more entities into an association/relationship * "John"
majors in "Computer Science" Relationship Type: set of similar relationships * Student (entity type) is related to Department (entity type) by MajorsIn
(relationship type). Relationship Types may also have attributes in the E–R model. When they are mapped to the relational model, the attributes
become part of the relation. Represented by a diamond on E–R diagram. Relationship types can have descriptive attributes like entity sets Relationships
tend to be verbs or verb phrases; attributes of relationships are again nouns [Drawing tips: relationship diamonds should connect off the left and right
points; Dia can label those points with cardinality; use Manhattan connecting line (horizontal/vertical zigzag)] Attributes and Roles An attribute of a
relationship type adds additional information to the relationship * e.g., "John" majors in "CS" since 2000 * John and CS are related * 2000 describes
the relationship – it 's the value of the since attribute of MajorsIn relationship type The role of a relationship type names one of the related entities.
The name of the entity is usually the role name. e.g., "John" is value of Student role, "CS" value of Department role of MajorsIn relationship type
(John, CS, 2000) describes a relationship Problem: relationships

Unit 1 Assignment 1 Legal Entity Selection
Assignment 1 – Legal Entity Selection My advice for this scenario would be to form a Limited Liability Partnership (LLP). I believe it would be the
best suited for all future partners and their situations, especially Friend 1 and Friend 3. (All friends will be referred to as Partners 1, 2 & 3). My choice
for an LLP revolves around the involvement of Partner 1 & Partner 3. Partner 1 is stated to have a full–time job and will not be able to participate in
the daily operations of the newly formed entity. However, it will be their initial investment that earns them an equal stake of ownership as Partners 2
&3 (this reasoning discards the possibility for a Limited Partnership). Partner 3 will only be able to participate partially due to their commitments of
another part–time job. This leads the need to ensure proper legal... Show more content on Helpwriting.net ...
Working only partly with Partner 3 and minimally with Partner 1 means without proper legal protection, any unethical business dealings could have a
massive impact on the other partners. An LLP would provide such protection for all partners. Finally, Partner 3 is forward thinking and would like to
ensure a transition of their stake in the business to their children. While this is possible, it may result in a dissolution and reestablishment of the
partnership for the children to inherit a stake, combined to equal that of their parent. However, while forming the business, I would suggest adding to
the partnership agreement a mechanism to transfer the interest of one partner to another, or multiple persons. This would have to be agreed upon
during the formation to avoid a dissolution of the partnership in the future. In order to form this entity, the partners must file with the New Mexico
Secretary of State and provide/acquire the following (Information taken from the website of the New Mexico Secretary of

How Choosing The Right Entity Can Save You Case Study
How choosing the right entity can save you
Written by Janet Gershen–Siegel
Business entities can seem confusing. Choose the right one from the very beginning and save on taxes and company liability.
First, here are the more common business entities.
Types of business entities
Sole Proprietorship
The SBA says a sole proprietorship is an unincorporated business owned and run by just one person. There is no difference between the owner and
the business. That means you, the owner, get all of profits, but you are also responsible for all your business's losses, debts, and liabilities.
Partnership
The SBA defines a partnership as a single business with two or more owners. Partnerships then divide into three types.
General Partnership ... Show more content on Helpwriting.net ...
An eligible domestic corporations can avoid double taxes (once to the corporation and again to the shareholders) if they opt to be treated as S
corporations.
In an S Corporation, profits and losses can pass through to your personal tax return. The business itself is not taxed. Only shareholders are taxed.
However, any shareholder employees must pay themselves reasonable compensation. The shareholder has to get fair market value, or the IRS could
reclassify additional corporate earnings as wages.
Limited Liability Company
A limited liability company is as a type of hybrid legal structure. It has the limited liability features of a corporation with tax efficiencies and
operational flexibility enjoyed by partnerships. The owners of an LLC are called members. Depending on the state, members can be one person (one
owner), two or more people, corporations, or even other LLCs.

Unlike corporate shareholders, LLCs are not taxed as a separate business entity. Instead, all profits and losses pass through the business to each
member of the LLC. Then LLC members report all the profits and losses on their personal federal tax returns, just like the owners of a partnership
would.
There are two great reasons why it matters which business entity you choose.
Taxes
Here are the specifics:
Sole proprietorship – since the single owner and the sole proprietorship are the same; the owner pays taxes on the sole proprietorship's

Customer's Contract With An Entity
Customer's contract with an entity, to acquire the output of goods/services (Telstra's: bundle–contracts) of entities ordinary–activities in substitute for
consideration. Thus, the contract either expressed/implied with the customer, becomes recognised as a customer–contract by the provider when each
parties rights regarding the transfer of goods or services stand identifiable; the probability of the consideration of good/services will be collected and
has commercial substance (AASB 15.9). b)Identifying performance obligations Contracts consist of promises in which are known as "performance
obligation", when "goods/services" are distinct (AASB 15.22). Thus, a good/service stands distinct when they are beneficial to the customers and are...
However, if the stand–alone price cannot be observed, entities must estimate the price. e) Satisfaction Accordingly, when performance obligations of
transferring goods/services to customers transpire, an entity then recognizes revenue (AASB 15.46). Correspondingly, performance obligations may be
satisfied at a point in time or over time.Thus, for performance obligations satisfied over a period time , an entity recognizes revenue for the measuring
the entities progress towards complete satisfaction of the performance obligation (AASB 15.B15). 2. Reason for new standard Diversification of
revenue recognition practices have arisen due to AASB 118 and 111 providing insufficient guidance, consequently repeatedly leading to different
accounting arrangements for similar transaction, such as a multiple line elements. Accordingly, the limited guidance provided, fosters a sense of
uncertainty among prepares of financial statements and difficultly in application of standards to complex transactions. Thus, consultation was
undertaken internationally/domestically by the IASB and the AASB to rectify inconsistences/weaknesses with standards. Accordingly AASB 15 was
issued intending to facilitate a single recognition framework for all contracts with

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